When Comparing EOQ and JIT Inventory Systems, Which of the Following

question 8

Multiple Choice

When comparing EOQ and JIT inventory systems, which of the following statements is false?

• A) The EOQ approach takes the viewpoint that some inventory is necessary.
• B) The EOQ system assumes a constant order quantity.
• C) JIT argues that inventory investments should be minimized.
• D) The EOQ system focuses on acquisition and holding costs.
• E) JIT argues that safety stocks are necessary to reduce the probability of a stock shortage.

---

Definitions:

Vertebral Column

The vertebral column, or spine, is a series of interconnected bones that protect the spinal cord and provide structural support to the body.

Subcutaneous Fat

A layer of fat located just beneath the skin, serving as insulation and energy storage.

Intervertebral Disks

Disks located between the vertebrae of the spine that act as shock absorbers and allow flexibility.

Long Bones

Bones that are longer than they are wide, serving as major supports for the body and facilitating movement, such as the femur and tibia.